The news of the week is the police in Berlin now saying that they believe that the 2007 Canadian $1 Million Gold stolen from the Bode Museum was melted.
Four suspects were arrested in Berlin for stealing the 100 kilograms (221 pounds) 24-karat gold coin are believed to have connections to the Lebanese Mafia. One of the suspects had started working for the museum a few weeks before the heist.
Since it is no longer a coin, it might be difficult to track down the actual gold. Although the coin was entered in the Guinness Book of World Records as the world’s purest gold coin and media estimates that it is worth $3.3 million, the actual melt value of the coin is $4,080,245.34 with the current gold spot price of $1269.10 per troy ounce.
Only nine stories are interesting enough to make the list this week.
DIEPPE, N.B. — It was officially code-named Operation Jubilee and the allied attack on the German-occupied port of Dieppe was a pivotal moment in the Second World War. But 75 years later, a battle is brewing over just what to call the bloody assault that claimed the lives of nearly a thousand Canadian soldiers. → Read more at atlantic.ctvnews.ca
ABERDEEN, SCOTLAND—The Scotsman reports that a ninth-century coin was found alongside evidence of a longhouse at Burghead Fort, a site researchers believe to have been a Pictish power center in northeast Scotland. → Read more at archaeology.org
Coin collecting is a cherished hobby amongst collectors and often sparks many fond memories. Endless nights searching through sacks of coins and coin rolls in hopes of coming across a Wheat Penny, a Buffalo Nickel, or a Seated Liberty come to mind for some. Overall, it’s the hard work and the fulfillment of the chase once you are able to add a coin of significance to your collection. → Read more at kiro7.com
A coin and money convention, including an auction for rare currency, will hit Denver’s Colorado Convention Center Aug. 1-5. → Read more at denverpost.com
Few know that one of the nation’s first gold rushes took place in Georgia during the first half of the 19th century. → Read more at onlineathens.com NOTE: I am an alumnus of the University of Georgia (HOW BOUT THEM DAWGS!) with hopes to return to Athens to see the exhibit!
It turns out that those who stole a huge gold coin from a German museum in Berlin on March 26, are "members of a Lebanese mafia." The gold coin was the size of a car wheel, weighing a 100-kilogram and worth around $ 4 million US dollars. → Read more at english.alarabiya.net
A while ago, I received the following question from a reader:
Why do coins that were made NOT for circulation, like Silver Eagles, Commemoratives Productions, etc have any value other than their face value? I do not see the value of collecting something that was never meant for circulation.
2013 American Eagle West Point Two-Coin Silver Set with reverse proof and enhanced uncirculated coins.
Starting with the first question, the face value of any coin is assigned by the legal authority that produces the coin. In the United States, the face value of any coin is determined by Congress. In other countries, the central bank or the treasury ministry makes the determination.
The American Silver Eagle Program was the result of the Reagan Administration wanting to sell the silver that was part of the Defense National Stockpile to balance the budget. Originally, the plan was to auction the bullion. After intense lobbying by the mining industry warning that such an auction would damage their industry, the concept was changed to selling the silver as coinage.
Changing the sales to coinage allowed for market diversification. Rather than a few people attempting to corner the market at an auction, selling coins on the open market allows more people to have access to the silver as an investment vehicle.
As codified in Title II of the Statue of Liberty-Ellis Island Commemorative Coin Act (Public Law 99-61, 99 Stat. 113), the “Liberty Coin Act” defines the program as we know it today including the phrase “The coins issued under this title shall be legal tender as provided in section 5103 of title 31, United States Code.”
As a legal tender item, the coin’s basic value has the backing of the full faith and credit of the United States government. Regardless of what happens in politics and world events, the coin will be worth at least its face value. Being minted by the U.S. Mint is a guarantee of quality that is recognized around the world making worth its weight in silver plus a numismatic premium.
Coins are perceived by the market as being more desirable than medals. Medals have no monetary value except as an art object. When it comes to investments, they do not hold a value similar to that of a legal tender coin. This is because medals are not guaranteed by the United States government, a key factor in determining its aftermarket value.
Once the coin has been sold by the U.S. Mint, its value is determined by various market forces. For more on how coins are priced, see my two-part explanation: Part I and Part II.
Why do American Silver Eagles have a One Dollar face value? Because the law (31 U.S.C. Sect. 5112(e)(4)) sets this as a requirement.
Why are the coins worth more than their face value? Because the law (31 U.S.C. Sect. 5112(f)(1)) says that “The Secretary shall sell the coins minted under subsection (e) to the public at a price equal to the market value of the bullion at the time of sale, plus the cost of minting, marketing, and distributing such coins (including labor, materials, dies, use of machinery, and promotional and overhead expenses).”
Can you spend the American Silver Eagle as any other legal tender coin? In the United States, you can use any legal tender coin in commerce at its face value. This means that if you can find someone to accept an American Silver Eagle, it is worth one dollar in commerce. However, it would be foolish to trade one-ounce of silver for one dollar of goods and services.
Commemorative Coins
Commemorative programs are different in that the authorizing laws add a surcharge to the price of the coin to raise money for some organization. Using the 2017 Boys Town Centennial Commemorative Coin Program (Public Law 114-30) as an example, Rep. Jeff Fortenberry (R-NE) introduced a bill (H.R. 893 in the 114th Congress) to celebrate the centennial anniversary of Boys Town. As with all other commemorative bills, the bill specified the number, type, composition, and denomination of each coin.
The Boys Town Centennial Commemorative coin features Fr. Edward Flanagan, founder of Boys Town
For example, the law says that the U.S. Mint will issue no more than 50,000 $5 gold coins that weighs 8.359 grams, have a diameter of 0.850 inches, and contains 90-percent gold. The law also has design requirements including being “emblematic of the 100 years of Boys Town.” The sale price of the coin will have “a price equal to the sum of” “the face value of the coins; and, the cost of designing and issuing the coins (including labor, materials, dies, use of machinery, overhead expenses, marketing, and shipping).”
As with other commemorative, the coins will include a surcharge. Each gold coin will include a $35 surcharge, $10 for a silver dollar, and $5 for each clad half-dollar coin. When the program is over, the surcharges “shall be paid to Boys Town to carry out Boys Town’s cause of caring for and assisting children and families in underserved communities across America.”
The 2017 Boys Town Centennial Uncirculated $5 Gold Commemorative Coin is selling for $400.45 and the proof coin is selling for $405.45 suggesting that the process of producing a proof coin costs the U.S. Mint $5 more than the uncirculated coin.
What goes into the price of the coin? After the face value of $5, there is a $35 surcharge added that will be paid to Boys Town, there is the cost of the metals used. Here is a workup of the cost of the gold planchet using current melt values:
Metal
Percentage
Weight (g)
Metals Base Rate
Price (g)
Metal Value
Gold
90%
7.523
1259.00/toz
40.48
$ 304.52
Silver
6%
5.015
16.57/toz
0.53
0.27
Copper
4%
3.344
2.83/pound
0.006
0.00
Total metal value
$ 304.79
Even though the melt value of the coin is $304.79, there is a service charge the U.S. Mint has to pay the company that creates the planchets. Thus, before the labor, dies, use of machinery, overhead expenses, and marketing is calculated into the price, the coin will cost $344.79 even though the legal tender face value of the coin is $5.
Taking it a step further, the average profit the U.S. Mint makes from gold commemorative coins is 8-percent (based on the 2015 Annual Report). If they are charging $400.45 for the uncirculated gold coin, the coin costs $368.41 to manufacture, $373.41 for the proof version.
Why collect these coins?
Why not?!
American Silver Eagle bullion coins were created for the investment market even though the authorizing law saw the benefit of allowing the U.S. Mint to sell a collector version. All of the Eagle coins are sold for investment or because people want to collect them for their own reasons. Some collect the collector version as an investment.
Commemorative coins are collected for their design or the buyer’s affinity for the subject and to support the cause which is being sponsored by the sale of the coin. Some collect commemorative coins like others collect series of coins.
Even though modern commemorative coins are sold for more than their face value, that does not mean they are not worth collecting. After all, can you buy a Morgan Dollar, Peace Dollar, Walking Liberty Half-Dollar, or a Buffalo Nickel for its face value?
Collecting bullion, commemorative, and other non-circulating legal tender (NCLT) coins is a matter of choice. If you choose to collect these coins, know that they will be worth more than their face value. And while they are legal tender coins, they are not meant for circulation. They are collectibles.
If you like these collectibles, enjoy your collection. Along with coins produced for circulation, I own American Silver Eagle coins, commemoratives, and other NCLT because I like them.
Some of the NCLT coins in my collection
2013 American Eagle West Point Two-Coin Silver Set with reverse proof and enhanced uncirculated coins.
2015 March of Dimes Commemorative Proof set
2014 National Baseball Hall of Fame commemorative proof dollar graded by PCGS PR70
2012 Star-Spangled Banner Silver Commemorative Obverse depicts Lady Liberty waving the 15-star, 15-stripe Star-Spangled Banner flag with Fort McHenry in the background. Designed by Joel Iskowitz and engraved by Phebe Hemphill.
1936 Long Island Tercentenary Half Dollar
Reverse of the 2016 Chinese Silver Panda coin
2006 Canada silver $5 Breast Cancer Commemorative Coin
2007 Somalia Motorcycle Coins
2010 Somalia Sports Cars
Boys Town commemorative coin image courtesy of the U.S. Mint.
I defended NGC’s position to produce the numismento not because I am interested in purchasing a slab with Harrison’s autograph, but because I do not see a problem with having it as part of the hobby. There are other issues that the hobby should attend to rather than worry about a reality television star and pawn shop owner signing slab labels.
However, my online correspondent, who I will keep anonymous but can respond to this post with an identification, was against the slab not because it will hurt the hobby but because of hidden meanings. When pressed on the real issue, my correspondent brought up a story of an elderly couple being taken advantage of by a company with an alleged A+ Better Business Bureau rating (although there have been questions raised about the Better Business Bureau’s ratings practice). The couple bought coins at a significantly inflated price with promises of a future gain only to learn that the coins were not worth what was promised.
About “The Coin Show”
The Coin Show is a podcast that is periodically produced by Mike Nottelmann and Matt Dinger. Matt owns Lost Dutchman Rare Coins in Indianapolis and is sadly not a fan of modern coins. If you are looking for a numismatic-related podcast, I would recommend The Coin Show. There are enough back episodes to keep you occupied until they produce their next show.
Unfortunately, this type of practice is not only pervasive in numismatics but there are all types of schemes where elderly are sold goods and services under fraudulent circumstances. Whether it is inflated prices of gold, the deflated prices of the hotel room gold buyers or the sets of State Quarters that are not worth thousands, these hucksters represent a problem that should be addressed.
Rather, my correspondent took the frustration of the situation on NGC and Harrison because Harrison does not represent the industry. He represents the pawn industry which does not have a high favorability rating.
My correspondent’s anger is misplaced. Rather than embrace the opportunity to use these slabs as a teaching moment and work with the industry to better educate the public, the response was to complain that this was not good for the industry because of what it allegedly represents. It is looking at the problems through a narrow prism, which is worse for the hobby than a stupid autographed slab. The perceived problems are not because a reality television star signs a slab label, the problem is that this industry has not properly represented itself and allowed those with less than moral character ruin things for everyone. The industry has let itself be denigrated by not properly getting out its message and allowing others to define the message. Industry Council for Tangible Assets (ICTA) has worked hard for the benefit of the industry the issues move faster than ICTA can keep up.
With the dysfunction in Washington lobbying efforts are turning to the state capitals where they can have a significant impact with less of a spotlight. ICTA needs help in nearly every state including California where my correspondent is from. Rather than kvetching on Facebook, I wish my correspondent and others would pick up a phone and join the battle.
Conflating the signing of slabs to the problems of an industry is myopic. If you want to fix the business problems then get look beyond the autograph to the real problems. Although I have never met NGC Chairman Mark Salzberg, his well-deserved reputation leads one to believe that he would not do anything detrimental to the business of numismatics, something he has dedicated his life to.
Unfortunately, I have a feeling that if someone walked into the shop that my correspondent owns and asked to buy the slab autographed by Rick Harrison, the business would find a way to allow the free market to reign and sell the customer what they asked for.
Depending on how you look at the news, it was a quiet week in numismatics from around the world. One issue not being written about in the numismatic press are the ongoing problems local governments and some businesses are facing in the United Kingdom on their switch to the new pound coin. Aside from production issues, there are entities that are not ready for the new pound coin and may not be ready when the old round pound is demonetized in October.
The United Kingdom is a smaller country than the United States with fewer people and not as many smaller governments trying to control their own piece of grass. Yet, the change was announced almost three years in advance and the Royal Mint provided free test coins to anyone who asked and they are still not ready. One can only imagine the chaos that would occur in the United States if the same thing happened here!
The other big story that I am not including is those about Bitcoin and other so-called crypto-currencies. There are a lot of stories about “Initial Coin Offerings” (ICO) announcing another version of these contrived bit-created† trading units. Unless crypto-currencies produce something numismatic-related that can be collected, it is the same as someone writing “This paper is worth $1” and using it for commerce. Without backing, both the crypto-currency and the paper are worth whatever someone will trade for it. Neither have real value and not a subject I plan to cover.
NEW ORLEANS – A local artist is drawing interest for a commemorative coin memorializing four Confederate-era monuments recently removed by the City of New Orleans. One Point Five Art, an artist based in Algiers who sells New Orleans-themed artwork on platforms such as Facebook, Ebay, and Etsy, has listed the “Monumental” New Orleans Commemorative Confederate Statue Coin for presale on Ebay. → Read more at wgno.com
INDIAN RIVER COUNTY — The seas have not been kind this summer to treasure hunters looking for gold off the coast of Wabasso. So far, the crew of the Capitana has recovered only one gold coin, an Escudo minted in Mexico about 1714. → Read more at tcpalm.com
CARSON CITY, Nev. – In February of 1870, the sparkling new steam-powered coin press inside the United States Mint in Carson City struck its first coin, a Seated Liberty silver dollar with a crisp CC mint mark. → Read more at carsonvalleytimes.com
Experts were thrilled to discover the coin on a remote island in the Scottish Orkney archipelago. The coin, which is believed to date from the mid fourth-century A.D., was found during an excavation on the small island of Rousay, which is part of the Orkney islands off Scotland’s northeastern coast. → Read more at foxnews.com
AN ancient Roman coin dating back around 1600 years has been discovered in Rousay, Orkney . Archaeologists unearthed the ancient copper alloy coin during a dig by teams working at the eroding beach at Swandro. → Read more at scotsman.com
A rare gold coin from the time of the Byzantine Emperor Phocas was discovered during excavations at Rusokastro Fortress, which is located on a hill near Zhelyazovo village, in Burgas district in southeastern Bulgaria, quoted by the Bulgarian National Television. → Read more at novinite.com
MANILA- The Bangko Sentral ng Pilipinas (BSP) is looking to launch redesigned coins with new security features before the end of the year. Central bank Deputy Governor Diwa Guinigundo said Friday that the new generation coins would be released and circulated within the year. → Read more at news.abs-cbn.com
DENVER — The World’s Fair of Money® is coming to Denver, Colorado, August 1 – 5, 2017, and the public can see more than $1 billion of historic rare coins and colorful currency including $100,000 denomination bills, Colorado Gold Rush-era coins, a famous $3 million nickel and currency that was mistakenly misprinted with upside down serial numbers. → Read more at northdenvertribune.com
† Before a Bitcoin fan decides to flame my stance on crypto-currencies, I do have a technical background especially in the area of information security. I fully understand the principles of the block-chain technology behind these crypto-currencies and the games that can be played not only with the elements of the blockchain (remember, it is only a pseudo-random number generator), but also with the trading mechanisms. I have sound technical reasons behind my social responsibility for not being a fan.
Recently, a number of people wrote to me asking what I thought about the announcement that the star of the History Channel’s “Pawn Stars”, Rick Harrison, was autographing the insert for Numismatic Guarantee Corporation holders.
I do not believe there should be a problem with this.
Previously, I wrote about something I called “numismentos,” mementos created from numismatic items. It was prompted when NGC announced they struck a deal with Edmund C. Moy, the 38th Director of the U.S. Mint and currently the last full-time director, to autograph labels. I also noted that NGC also had autograph deals with Elizabeth Jones and John Mercanti, the 11th and 12th Cheif Engravers of the U.S. Mint, respectively.
You can see the list of available NGC Signature Labels here.
But NGC is not the only one in this game. Professional Coin Grading Service has had similar promotions including Philip Diehl, another former Director of the U.S. Mint and a long list of Baseball Hall of Fame inductees who signed labels used in the encapsulation of the 2014 National Baseball Hall of Fame commemorative coins.
A Goodacre Dollar encapsulated by ICG
Famously, Glenna Goodacre, who was paid $5,000 for her design of the Sacagawea dollar, asked to be paid in the new dollar coin. She sent the coins to Independent Coin Graders to be encapsulated with special labels. Goodacre then sold the coins at a premium. She did not sell out of these coins. Later, about 2,000 coins were acquired by Jeff Garrett who submitted them to PCGS. The coins were encapsulated with a special attribution on the PCGS label and included an insert with an autographed by Philip Diehl.
ICG also had some of the designers of the State Quarters autograph labels.
Does anyone else remember when the original PCI was still in business and they hired J.T. Stanton as company president and they had him autograph labels of coins he graded?
Although all of the grading services include special attribution for coins, NGC and PCGS have special labels that they use for certain coins.
In all cases, these grading services are creating these numismentos for customers interested in having the label be significant to their collection.
The only problem I have with the label designation is the “First Strike” or “First Strike” labels. There are questions as to the validity of these designations that causes an unnecessary premium to be added to these coins.
Besides, If I took any other stance, I could be accused of hypocrisy. In a few cases, I have purchased numismentos. My collection includes a pair of ICG holders with 2001-P and 2001-D New York State quarters autographed by designer David Carr that is part of my New York collection.
2000-P New York quarter with Daniel Carr’s autograph on ICG label
2000-D New York quarter with Daniel Carr’s autograph on ICG label
As part of my Bicentennial Collections, I own a Bicentennial PCGS Signature set. The set consists of the three proof coins with the special bicentennial reverse in PCGS slabs with the autographs of Jack L. Ahr, Seth Huntington, and Dennis R. Williams, the designer of the coins. There is a business strike version of this set but I find the proof coins more appealing.
1976-S Silver Proof Bicentennial Autograph Set
The only reason that there appears to be some umbrage taken with the autograph by Rick Harrison is that he is a relentless self-promoter whose style is not welcome by everyone. Harrison is not the first non-numismatic-related celebrity to autograph inserts but may be the most controversial to some people.
As I have previously suggested, we can call these types of numismatic-related collectibles numismentos. Numismento is a portmanteau of numismatic + memento.
I suggest the name to distinguish collecting the coins from collecting the slabs, show-related ephemera, buttons, or anything else that is not numismatics.
If collecting numismentos makes you happy? Enjoy yourself!
I have lamented the ending of the weekly newsletter. I thought it would be fun to share the numismatic-related news from non-numismatic press from around the interwebs and grow into something interesting. To support generating the newsletter, I wrote some software to automate the process. These scripts are pretty cool if you ask me (I know you didn’t but I did). It is not fun letting good software go to waste. So I reworked the output to generate a version for the blog.
Each week, I will take no more than 10 stories from around the world and post them Sunday evening. These stories range from those about coin production, finds of ancient hoards, coin and currency issues from world government, bullion, and anything else that would concern the numismatic market in some way.
It's time to start checking your pockets again, as a rare pound coin with a manufacturing fault has been valued at £3,000. A coin collector from Hull spotted the error on his new £1 coin and immediately contacted the Royal Mint to find out if it was a genuine coin which could therefore be extremely rare and sought-after. → Read more at cosmopolitan.com
Summary Silver fundamentals released by the Silver Institute for 2016 show reduced demand, with a smaller deficit compared to 2015 Silver is reacting to investment news such as interest rate rises, and has since the second half of 2016 → Read more at seekingalpha.com
The Prince of Wales has struck a commemorative coin to mark the Duke of Edinburgh's retirement from public duties. One side of the £1 coin bears the image of Prince Philip and the phrase "Non sibi sed patriae", meaning "not for self, but country". → Read more at bbc.com
BERLIN — A giant gold coin that was stolen from a museum in the heart of Berlin this year was probably smashed or melted down and will most likely never be recovered, the authorities said on Wednesday, as they announced four arrests, including that of a museum security guard. → Read more at nytimes.com
A Beaumont man is facing up to 20 years in federal prison for an alleged scheme involving $5.4 million in rare coins. Westley Pollard Jr., 42, was arrested Wednesday morning and charged with 11 counts of mail fraud, according to a statement from the U.S. → Read more at beaumontenterprise.com
DEFECTIVE quids — previously dubbed the “most secure in the world†— have been slowly cropping up online with many selling for hundreds of pounds. But are these errors really that common and why do they make your coins collectable? → Read more at thesun.co.uk
Governor of the Bank of Jamaica (BoJ) Brian Wynter says a shortage of coins will ease later this month. He told Parliament's Economy and Productions Committee Wednesday that there is currently a shortage of $20 coins. → Read more at jamaica-gleaner.com
HOW much is a dollar worth? If it falls between the car seat cushions, or it gets lost in the washing machine, it’s worth big bucks to Ronnie Shahar. Every year, countries all over the world ship millions of tonnes of scrap metal to processing plants in China, India and South-East Asia, the remains of old cars, vehicles, washing machines and vending machines. → Read more at news.com.au
Indian Prime Minister Narendra Modi commemorated the birthday of Shrimad Rajchandra — the spiritual guide of Mahatma Gandhi — by launching two commemorative coins of Rs. 150 and Rs. 10 on June 29 at the Sabarmati Ashram in Ahmedabad. → Read more at indiawest.com
Errors verus Varieties: Varieties are spice ← you are here
A variety is a coin that differs from its basic design type in some distinctive way and is thus differentiated by collectors. Varieties are not errors. They are deliberate changes to the design whether it is to better define the design, adjust the design to strike better, or to add or change elements like dates and mintmarks.
A key difference between a variety and an error is that varieties are replicated for multiple strikes. Die changes, repunched mintmarks, repunched dates and over polishing of dies can reproduce the variety for the life of the die or until it is detected by Mint workers.
Nearly every series of coins has its own traceable die varieties that have been studied and catalogued by researchers. Researchers assign the varieties a number that is used by the third-party grading services to provide attribution to the variety on their holder.
Bicentennial Dollar Type 1 (1975) Reverse
Bicentennial Dollar Type 2 (1976) Reverse
1979 Susan B Anthony Varieties
Variety collecting is a very specialized subject. If you are going to collect varieties, you should read the references to understand the characteristics of the varieties. Some of the more well recognized and documented varieties include:
Catalog
Coin Series
Main or Initial Reference
Cohen (C#)
Half Cents (1793-1857)
American Half Cents – The “Little Half Sisters” by Roger S. Cohen, Jr.
Sheldon (S#)
Large Cents (1793-1814)
Penny Whimsy by Dr. William H. Sheldon
Fortin (F#)
Liberty Seated Dimes (1837-1891)
Liberty Seated Dimes – Die Varieties, 1837 – 1891, by Gerry Fortin
Overton (O#)
Half Dollars (1794-1836)
Early half dollar die varieties, 1794-1836, by Al C. Overton and Donald L. Parsley
Van Allen-Mallis (VAM#)
Morgan and Peace Dollars (1878-1935)
Comprehensive Catalog and Encyclopedia of Morgan & Peace Dollars, by Leroy Van Allen and A. George Mallis
Fivaz-Stanton (FS#)
Varieties from the Cherrypickers’ Guide
Cherrypickers’ Guide to Rare Die Varieties of United States Coins, by Bill Fivaz and J.T. Stanton
Arguably, the most collected series by varieties are Morgan Dollars. VAM varieties and catalog numbers were introduced to the hobby by Leroy Van Allen and A. George Mallis who discovered the varieties while examining Morgan and Peace Dollars. Their book, Comprehensive Catalog and Encyclopedia of Morgan & Peace Dollars began a hunt that has seen hundreds of more varieties found and cataloged.
Most VAM varieties cannot be seen without magnification and detailed knowledge of what to look for. The primary resource for VAM collectors is the VAMworld website. Aside from listing the identified VAM varieties, there are instructions how to identify VAM varieties.
1878-P VAM-169 Quadrupled Stars (courtesy of VAMworld)
1886-P VAM-1A Line in 6, Slightly Doubled Ear (Image courtesy of VAMworld)
1921-S VAM-6A Doubled Stars & Motto & Upper Reverse, Die Scratch (Image courtesy of VAMworld)
The third-party grading services have an optional service that will identify VAM varieties on their holders. However, they do not recognize all VAM varieties. There are three sub-lists of catalogued VAM varieties that are recognized. These varieties are as follows:
TOP 100: The 100 most significant VAM Varieties known
HOT 50: A list of additional 50 VAM Varieties that collectors are interested in finding. Many of these varieties are scarce and have sold for significant premiums
HIT LIST 40: A list of 40 new VAM Varieties that have been discovered since the publishing of the HOT 50 list
General searching for varieties and errors should consider picking up a copy of Cherrypickers’ Guide to Rare Die Varieties of United States Coins by Bill Fivaz and J.T. Stanton. The book comes in two volumes. Volume 1 covers die varieties of half cents through nickel five-cent pieces. Volume 2 covers everything else including gold and bullion issues.
FDR dime struck on a nail (stand in for Festivus Pole)
Over the years, I have been asked what are the differences between errors and varieties. While some errors are distinctive, some wonder why some errors are not varieties and some varieties are not classified as errors.
A basic rule of thumb is that even though errors and varieties represent changes to the basic design of the coin, they differ in how they occur and the resulting appearance of the coin.
A Mint Error is the result of an issue with the manufacturing processes causing the coin to be damaged in some way. Errors can be the result in malfunction of the equipment, imperfect coining materials, or created by human error.
Even though modern equipment is supposed the make the striking process more consistent, when the manufacturing process involves striking billions of coins, there are bound to be a few errors. Coining machines have so many moving parts and everything has to work in concern, one variation in speed, force, vibration, or tilt can make the coins look very different than intended.
Then there is the human factor. Humans are imperfect beings subject to making mistakes. Even though the machines are supposed to help guide the humans to reduce mistakes, something can go wrong, especially in an operation that involves making billions of the product.
To help understand where some of the mint errors come from, they can be categorized as three different types: Planchet Errors, Die Errors, and Strike Errors.
Planchet Errors
1943 Lincoln cent struck on a copper planchet (Courtesy of CoinTrackers)
Planchet Errors are defects of a coin that was caused by the planchet, the coin blank, being imperfect prior to the coin being struck. Planchet Errors occur prior to striking the coin but in ways that could sometimes not be detected. Types of Planchet Errors include:
clipped planchet: Term used to describe a planchet that may have been cut incorrectly from the metal sheet. The clipped area may be curved if cut into the area where another planchet was cut out or straight if cut beyond the edge of the metal strip.
delamination: A form of planchet flaw caused by imperfections in the metal whereby a thin strip of the metal separates itself from the coin.
lamination or planchet flaw: Lamination is a type of error in the planchet that occurs when a thin layer of the metal splits or peals away from the surface of the coin.
off metal or wrong planchet: A type of error that occurs when a coin is struck on a planchet that it is not normally struck, such as striking of a quarter on a planchet that was supposed to be for a nickel.
Die Errors
A Die Error describes a defect caused by a flaw in the dies used to strike the coin. Types of Die Errors include:
cud: The area of a coin struck by a die that has a broken area across part of its surface. The result appears as a blob of metal on the surface of the coin.
die break or die crack: Fine raised lines can appear across the coin when something causes the die to break or crack. A cracked die opens a fine line in the design allowing the flow of metal to fill in the space when struck.
filled die: A type of error that appears on a coin when a foreign substance, such as grease, fills the elements of a die used to strike coins. A filled die error can also occur when the dies are polished to remove debris during the striking process. Modern minting processes have eliminated the polishing of dies but the problems with filled dies continue.
hub doubling: Refers to the doubling of the elements on a coin that was caused by the hub being pressed more than once into a die in different angles. Hub doubling occurs prior to the striking process when the dies are created. Master hubs are pressed into the dies to create working dies for the coining process. Mistakes in this process can result in the production of many coins with the error struck into them.
mule: A mule is a type of mint error that occurs when a coin is struck with two dies that were not intended to be used together.
1955 DDO Lincoln Cent
1937-D 3-Legged Buffalo Nickel
Two of the most famous dies errors are the 1955 Double Die Obverse (DDO) Lincoln cent and the 1937-D Three-Legged Buffalo nickel. The 1955 DDO Lincoln cent and is known as the King of Errors. It is the result of hub doubling that created the double-looking lettering on the coin. It is the coin that really started the error collecting segment of the hobby.
The 1937-D Three-Legged Buffalo nickel occurred when a mint worker polished the reverse die of the Buffalo nickel too aggressively without checking his work. The result was the front-right leg of the buffalo being eliminated from the die. A few thousand were created before the Mint officials figured out they had a problem.
Strike Errors
Off-center 50 States quarter struck in Denver
The strike occurs when the top die, usually the obverse, is pushed with such forced on a planchet sitting in a position on the anvil dies, usually the reverse, that will make the impression on the coin. Strike errors are the result of a mechanical problem that occurs during this process.
broad strike: A coin that is struck in a way that expands beyond the boundaries of the collar. A broad strike can give the coin n flat or elongated look.
brockage: A type of striking error when the coin is not ejected properly from the press and causes the mirror image of the exposed design to be struck on the next coin.
capped die: An error in which a coin gets stuck on a die and remains stuck for successive strikes. Eventually, the coin forms a “cap” on the die and imparts its image on coins it strikes. When the cap falls off, it usually resembles a small bowl.
clashed die: One of the more interesting errors occurs when during the striking process, a malfunction prevents a planchet from being in place when the dies are forced together causing them to crash into each other. This leaves the design from either side on the other. Subsequent coins are then struck with the latent image of the other side pressed into the coin.
cracked die: An error that occurs when during the stress of striking coins, the die cracks across its face. When a cracked die strikes a coin, the metal flows into the crack that impresses a raised area in the coin that is not part of the design.
filled die: A type of error that appears on a coin when a foreign substance, such as grease, fills the elements of a die used to strike coins.
incomplete strike: A coin that is missing design detail because of a problem during the striking process.
misaligned dies: A striking error caused by one or both dies not set properly in the coining machine or worked loose during striking.
multiple-struck: A type of mint error when the coin was struck more than once. A multiple-struck coin can show the design as it is struck in multiple places.
off-center strike: During the striking process, the coin is not seated in the right place in the area over the anvil (lower) die causing the coin’s design to not be properly centered on the coin.
overstrike: A type of minting error when a coin, token or medal is struck on a previously struck coin, token or medal.
partial collar strike: A type of striking error where a planchet does not enter completely into coining position and is struck partly within the collar and partly outside.
rotated dies: A type of mint error caused by the dies not being aligned when striking the coin, token or medal.
1999-P Georgia state quarter double struck and off center.
strike doubling or doubled strike: A coin that is struck more than once while in the coining machine resulting in doubling of design elements. Double strikes are different from hub doubling in that this type of error is a mechanical failure within the coining machine whereas hub doubling happens before striking. Double strike errors are rarer than hub doubling.
weak strike: refers to a coin that does not show its intended detail because of low striking pressure or improperly aligned dies.
When going to coin shows you can see some of the most fantastic errors. Some boggle the mind how they were done and how they escaped the U.S. Mint. Dealers whose concentration are errors do not reveal their secrets but I have been told that some have contacts with some of the security companies that haul money on behalf of the banks.
This topic is not complete until we talk about varieties. That will be the next post.
If you have not heard, the U.S. Mint announced that they will produce a set of enhanced uncirculated coin featuring all of the coin releases for this year in a package similar to that used for their proof sets. Enhanced Uncirculated coins are struck using dies that have been specially laser etched to use levels of frosting to give the designs a more in-depth look.
An advantage of the enhanced uncirculated process is the ability to selectively apply the frosting to the die. One of the coins where this had a real dramatic effect was the 2013-W American Silver Eagle. The enhanced uncirculated American Silver Eagle was only sold as part of the 25th Anniversary set.
2013 American Eagle West Point Two-Coin Silver Set with reverse proof and enhanced uncirculated coins.
2013-W American Silver Eagle enhanced uncirculated coin
2015-W Native American Dollar Enhanced Uncirculated Reverse celebrating the Mohawk Iron Workers
Reverse of the 2015-W Enhanced Uncirculated Native American Dollar
Obverse of the 2015-W Enhanced Uncirculated Native American Dollar from the 2015 $1 Set
Previous Enhanced Uncirculated issues
According to information currently available, the coins will be struck on the same planchets as what is used for business strikes.
Every so often I will read something and even though I agree with the premise and possibly the hypothesis, I disagree with the method. This is what happened when I read “How do late ANACS slabs stack up with modern PCGS?” This article by Michael Bugeja at Coin Update is not the first of its type on that site but is the latest of what I consider using faulty data to prove a hypothesis.
I submitted comments about my problems to the article. Since whoever is moderating comments has chosen not to publish them, I am using my own platform to call them out on this.
In Bugeja’s showdown of old ANACS versus new PCGS, he found six coins, which is where I begin to have problems. With a potential sample size of thousands or even millions of coins, six coins is a rounding error. And not only did he use six coins but from different dates, mints (Philadelphia and San Francisco), and grades. Anyone who has any knowledge of the scientific method knows that he has just introduced too many variables that will allow anyone to argue about the differences in the metals, machinery, and environmental factors.
The next problem with the experiment is that he uses damaged coins. Every coin Bugjea used was toned. Toning of the coin is a chemical reaction with the metals that cause a change in the original metal that makes it different from the original minted coin. While some consider toning acceptable, it represents a chemical change to the surface making it damaged.
How does one compare one damage to another? Do we know how these coins were damaged? Did the conditions that caused the toning of coin change the surface differently than the other? Did the damage caused by the environmental factors change? How do we know that the old ANACS holders were not sealed well enough to prevent changes in the toning from when they were originally graded?
I will not argue whether something happened to the coin that could have caused damage when it was cracked out of the original ANACS holder. Since there are so many questions about the coins, we can leave this argument off the table. I do hope Bugeja reported the serial number to ANACS so that their population reports can be appropriately adjusted.
Even if the test was to be limited because of the potential cost. A proper test would be to find six coins from the same year and the same mint that were not toned (or damaged). All six coins should be around the same grade or even a grade lower that it would be possible to pass for the higher grade. Once you have taken the variables away then you can test and determine the probability of proving or disproving the hypothesis.
Bugjea concludes that the early ANACS graders were more generous based on information that is so flawed that if that article was sent to a peer-reviewed journal it would be rejected.
He then goes on to warn, “Bid cautiously on early ANACS coins.” How about you bid cautiously on any coin you are not sure about. There are problems with coins in every holder and there are gems found with coins in every holder. Just because a coin is graded does not make it worth the plastic it is encased on.
The ONLY statement in the article I agree with is “Rely on your grading acumen rather than the age of the holder.” In fact, I would rephrase it to “Rely on your grading acumen rather than the holder.”
Translated: BUY THE COIN, NOT THE HOLDER!
Now tell me, does it really matter what holder these coins are in? These coins are so cool that a holder might detract from their beauty!
1937-D 3-Legged Buffalo Nickel
1942/1 Mercury Dime
1955 DDO Lincoln Cent
NOTE: I did not include images from the original article because I do not have permission.
The news of the week is the police in Berlin now saying that they believe that the 2007 Canadian $1 Million Gold stolen from the Bode Museum was melted.
Depending on how you look at the news, it was a quiet week in numismatics from around the world. One issue not being written about in the numismatic press are the ongoing problems local governments and some businesses are facing in the United Kingdom on their switch to the new pound coin. Aside from production issues, there are entities that are not ready for the new pound coin and may not be ready when the old round pound is demonetized in October.
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